Help! I didn’t protect the tenancy deposit

Help! I didn’t protect the tenancy deposit

9:46 AM, 31st October 2022, About 2 years ago 38

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Hello, We let our property to a couple with a baby in 2019, with 90% of their rent paid by the council through a housing benefit.

They immediately fell into arrears, not paying the rent at all, so the council told me they would pay the 90% direct to me. Since then the 10% payments have been erratic and they are now around £1,000 in arrears.

Mutually, we would all like them to move out. I need to do some refurbishment, and they are now overcrowded. Another child was moved in without my knowledge – not a baby – and also a large dog. It’s a 2 bed flat.

I now want to just sell the place.

They want to go somewhere bigger, and have got themselves on the list for a council property, but this could take years. I thought an eviction would help them to get bumped up the list, and I considered an s8 as they aren’t supposed to have a dog, and are in arrears, but I chose instead a s21.

I issued one, but the council have asked for the tenancy deposit receipt. [And a how to rent leaflet]. The problem is, and I’m of course in the wrong here, as an amateur, I didn’t protect the deposit.

I’ve returned it to them by bank transfer to try to draw a line under this, but they have been to citizens advice who is advising them to take me to court.

I’m not sure how this will help them find a new home, and she said she doesn’t want to go down that route. And now she’s asked me for a £20 loan.

I am now not sure what to do. They want to leave, but cannot, and they cannot afford a larger private rental.

How is this going to end? My gut says “badly”.

Any advice please?

Kate


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Surrey Landlord

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14:02 PM, 31st October 2022, About 2 years ago

I'd withdraw the eviction notice. Join one of the landlords association so you can get support and really know how you should be a landlord properly. Register the deposit and ensure all the other paperwork is in order.
I'd be happy to accept 90% of the rent in this day and age, the shortfall is nothing compared to voids, redecorating and finding a new tenant - in which case you'd be even more out of pocket. I'd look at it like this, a bird in the hand is worth2 in the proverbial bush, If you remove the eviction threat, the heat might just settle down and allow you to get the paperwork in order. Here's hoping.

Kevin Fallon

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14:08 PM, 31st October 2022, About 2 years ago

I can only sympathise with you, what has this crazy world come to, take legal advice, they are not your friends, they will seek to make a quick quid out of you, limit your exposure.

Nikki Palmer

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14:31 PM, 31st October 2022, About 2 years ago

I wish people would read the information given before throwing in their 2 penny's worth

It's basic communication - this is possibly why there are so many amateur Landlords in a similar hole

David Houghton

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14:44 PM, 31st October 2022, About 2 years ago

Reply to the comment left by Luke P at 31/10/2022 - 13:52
As long as you protect the deposit before court proceedings are issued against you the. You are ok

David Houghton

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14:48 PM, 31st October 2022, About 2 years ago

Reply to the comment left by K Anon at 31/10/2022 - 13:10
Tiensia v Vision Enterprises Limited (t/a Universal Estates) and Honeysuckle Properties v Fletcher, McGrory and Whitworth. The facts in both cases were similar and concerned late compliance by the landlord under existing tenancies.

By majority decision the court held that if the landlord fails to place the deposit within a deposit scheme within the required 14-day period there will only be a penalty if there is a complete failure to protect the deposit at any stage up to the hearing of a claim brought by a tenant for the remedy under the Act.

David Houghton

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14:49 PM, 31st October 2022, About 2 years ago

Reply to the comment left by David Houghton at 31/10/2022 - 13:01
Tiensia v Vision Enterprises Limited (t/a Universal Estates) and Honeysuckle Properties v Fletcher, McGrory and Whitworth. The facts in both cases were similar and concerned late compliance by the landlord under existing tenancies.

By majority decision the court held that if the landlord fails to place the deposit within a deposit scheme within the required 14-day period there will only be a penalty if there is a complete failure to protect the deposit at any stage up to the hearing of a claim brought by a tenant for the remedy under the Act.

David Houghton

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14:50 PM, 31st October 2022, About 2 years ago

Reply to the comment left by Luke P at 31/10/2022 - 13:52
Tiensia v Vision Enterprises Limited (t/a Universal Estates) and Honeysuckle Properties v Fletcher, McGrory and Whitworth. The facts in both cases were similar and concerned late compliance by the landlord under existing tenancies.

By majority decision the court held that if the landlord fails to place the deposit within a deposit scheme within the required 14-day period there will only be a penalty if there is a complete failure to protect the deposit at any stage up to the hearing of a claim brought by a tenant for the remedy under the Act.

David Houghton

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14:53 PM, 31st October 2022, About 2 years ago

Reply to the comment left by Seething Landlord at 31/10/2022 - 12:59
Unless she has a receipt or other written evidence it would be wise to pay in an amount of her own money as deposit and claim it back after the tenancy. Anything that can cause a hearing in a s21 process should be avoided as the delay can mean further lost rent

Judith Wordsworth

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16:02 PM, 31st October 2022, About 2 years ago

Reply to the comment left by K Anon at 31/10/2022 - 12:08
She cannot put the deposit on protection as she’s paid it back to them

K Anon

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16:48 PM, 31st October 2022, About 2 years ago

Reply to the comment left by Judith Wordsworth at 31/10/2022 - 16:02yes you are correct Judith I missed that.
In itself its made life a bit harder for the OP.
It is unclear who they actually 'repaid' the deposit too.
Repaid is the LA but you cannot pay it back to anyone other than the tenant.
So I would guess assuming it was the LA, then they will send it back again.
I made this point in court but I was wasting my time. The Housing act says deposit must be 'repaid' (I think the word they use is 'repay') but in my case judge ignored the word 'repay' which would have been repay the local authority and carried on as though the tenant had paid it. So if you lodge late our/all DSS tenant can claim compensation for a deposit they never paid. Its just like Christmas really.
i.e my argument attempt was how could you repay something to someone if they never paid it in the first place... but I had lost before we started as I was over the 31 day deadline.
Note to anyone, if a No Win No Fee solicitor is involved you haven't got a good case.
Simplest thing is to ensure deposit is protected which is not something I will ever overlook again.

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